Isaca Updated CRISC Exam Questions and Answers by rocky

 Understanding Strategic Risk:

Strategic risk refers to the potential losses that can arise from adverse business decisions, improper implementation of decisions, or lack of responsiveness to changes in the business environment.

 Reputational Impact of Cybersecurity Breaches:

A cybersecurity breach can severely damage an organization's reputation, affecting customer trust, investor confidence, and market value.

Such impacts go beyond immediate financial losses and can have long-term strategic implications for the organization's competitive position and strategic objectives.

 Classification of Risk:

Financial Risk: Direct financial losses due to a breach (e.g., fines, legal costs) but does not cover reputational impacts.

Data Risk: Focuses on the loss or compromise of data but not the broader strategic impact.

Operational Risk: Pertains to disruptions in business operations, while reputational damage influences the organization’s strategic direction and goals.

 Strategic Risk and Reputation:

Reputational damage from a cybersecurity breach can lead to a loss of customer base, reduced market share, and difficulties in strategic partnerships, all of which are strategic concerns.

Addressing reputational risk requires strategic planning, proactive communication, and long-term efforts to rebuild trust and credibility.

 References:

The CRISC Review Manual highlights that reputational risk is a significant aspect of strategic risk, especially following cybersecurity incidents (CRISC Review Manual, Chapter 1: Governance, Section 1.1.3 Importance and Value of IT Risk Management)​​.

Updating a risk register with assessment results for a key project must primarily capture action plans to address risk scenarios requiring treatment.

Risk Register Purpose:

Documentation of Risks: The risk register is a central repository for all identified risks and their respective treatment plans. It ensures that all risks are documented, tracked, and managed throughout the project lifecycle.

Action Plans: It is crucial to document action plans for risks that require treatment. This ensures that there are clear strategies in place to mitigate or manage these risks.

Importance of Action Plans:

Mitigation and Management: Action plans detail the steps necessary to mitigate identified risks, providing a clear path for risk management. This is vital for ensuring that risks do not negatively impact the project.

Accountability and Tracking: Including action plans in the risk register assigns responsibility and timelines for risk treatment, which is essential for accountability and tracking progress.

References:

According to ISACA's guidelines, a comprehensive risk register should include action plans for addressing risk scenarios. This ensures that all identified risks are managed effectively and that appropriate actions are taken in a timely manner​​.

Monitoring the average time to complete tasks and monthly reporting of the findings during the month-end close process aligns with the definition of a Key Performance Indicator (KPI).

Understanding KPIs:

Performance Measurement: KPIs are used to measure how effectively a company is achieving its key business objectives. Monitoring the average time to complete tasks during the month-end close process provides a performance metric.

Tracking Efficiency: By reporting these findings monthly, management can track the efficiency and performance of the system load capabilities.

Specific Measure:

Task Completion Time: The average time to complete tasks is a specific, measurable indicator of performance. It helps in understanding how well the system handles load and identifies areas for improvement.

Continuous Improvement: Regular monitoring and reporting encourage continuous improvement, which is a core aspect of using KPIs.

References:

According to ISACA's guidelines on performance measurement, KPIs are critical for tracking the efficiency and effectiveness of processes and systems. They provide tangible metrics that help in decision-making and performance improvement.

The status of identified risk scenarios, because it helps to monitor and track the current level and direction of the IT risks, and to determine whether the risk responses and controls are adequate and effective. An IT risk register is a document that records and tracks the key IT risks that an organization faces, along with their likelihood, impact, and response strategies. An IT risk scenario is a hypothetical situation or event that describes the source, cause, consequence, and impact of an IT risk. The status of identified risk scenarios is the most important factor, as it reflects the actual and potential outcomes of the IT risks, and the performance and progress of the risk management process. The costs associated with mitigation options, the cost-benefit analysis of each risk response, and the timeframes for risk response actions are all possible factors to review when evaluating the ongoing effectiveness of the IT risk register, but they are not the most important factor, as they do not directly measure and report the status of the IT risk scenarios.